Do Banks Actually Loan Money When Making You a "Loan"?
What is the Problem?
This one comes from Colin in Yorkshire, and his question is: “I’ve seen a lot of debate online about Bank loans. Do Banks actually loan anything when they make a loan?”
In order to understand the question and the answer, you are advised to engage in some homework, and learn about the creation of money: Modern Money Mechanics, the Chicago Plan (IMF Website), and the Bank of England Quarterly Bulletin 2014 Quarter 1, Volume 54, No. 1; are good places to...